Monday, 25 March 2019

Zimbabwe Power Company (ZPC) has cancelled the $133
million tender for the repowering of Munyati Power Station awarded to an Indian
company, Jaguar Overseas, after the firm failed to secure funding for the
project, four years after winning the bid.

The Procurement Regulatory Authority of Zimbabwe (PRAZ) has
since granted ZPC the nod to approach the next bidder in line with the Public
Procurement and Disposal of Public Assets (PPDAP) Act.

Jaguar Overseas was in 2015 awarded the tender to re-power
the plant, a project which entailed replacing 15 boilers with modern
technology, refurbishing 2×50 megawatt steam turbines, overhauling cooling
towers, water treatment plant, civil works, dredging and rehabilitating a weir
on Munyati River for water supplies to the thermal plant.

However, the firm has failed to secure funding to
rehabilitate the power plant.

It emerged that the Indian firm has only managed to raise
only 15 percent of the required funding.

ZPC acting managing director Engineer Robson Chikuri on
March 11 this year wrote to PRAZ chief executive Mr Nyasha Chizu seeking
authority to complete the tender using the PPDAP Act.

“ZPC has failed to enter into a procurement contract with
the winning bidder Jaguar Overseas,” Eng Chikuri said.

“A due diligence by ZPC on Jaguar Overseas Limited noted
that whereas Jaguar Overseas Limited indicated that they had secured 100
percent funding for the project only 15 percent of the funding could be
confirmed by their funders. Application of the PPDPA will enable ZPC to
conclude the tender process in line with Section 103 (repeal of CAP. 22.14 and
savings and transitional provisions).”

Responding to the application, Mr Chizu said: “In terms of
Section 103 (4) of the Public Procurement and Disposal of Public Assets(Cap 22: 23) the authority observed that
Jaguar Overseas Limited failed to come up with the 100 percent funding as
required on the project and as such the accounting officer has proposed to
approach the next compliant bidder in line with Section 55 (3) of the same
Act.”

He added: “The accounting officer must ensure that
application of Section 55 (3) of the Act is applied on valid bids only. The
accounting officer must therefore submit the procurement record review by SPOC
in terms of Section 54 of the PPDPA Act as read with Section 332 of the PPDPA
regulations (S.I 5 of 2018).”

Zimbabwe has power shortages with generation averaging 1
300MW against national peak period demand of 2 200MW.

This has seen the country spending millions of dollars
importing electricity from South Africa and Mozambique.

President Mnangagwa’s administration is implementing a
number of power projects countrywide for Zimbabwe to attain electricity
self-sufficiency.

On the cards is the construction of the $5,2 billion Batoka
Gorge Hydro Power Plant which will see Zimbabwe and Zambia sharing 2 400
megawatts equally. Herald